US Approves H200 Chip Sales to Chinese Buyers, Jensen Huang in Beijing Amid Trade Talks

The narrative of US-China semiconductor decoupling hit a significant speed bump today as multiple sources confirmed that the US government approved NVIDIA H200 chip sales to Chinese buyers. Jensen Huang's presence in Beijing during the Trump-Xi summit, combined with official US approval for advanced chip exports, suggests that despite rhetoric around technology competition, both governments are finding pragmatic pathways for AI infrastructure buildout. This reversal stands in sharp contrast to earlier speculation that the administration would tighten export controls; instead, the trade talks appear to be unlocking bilateral opportunities in critical technologies.

The scale of approval matters. Sources indicate 10 Chinese companies received clearance, a material expansion from prior restrictions. The timing coincides with Trump stating that Xi "likes the idea of buying more US oil," alongside agricultural purchase commitments. Huang's appearance at the Beijing state banquet alongside Elon Musk and Tim Cook underscores Silicon Valley's integration into top-level diplomatic engagement. NVIDIA shares extended a 20% rally over seven days, reaching near $6 trillion in market value as traders price in both continued AI capex and de-escalation in US-China tech friction.

The broader implication is bifurcated. On one hand, chipmakers and AI infrastructure plays benefit from a lifting of export uncertainty and a signal that US companies will retain access to high-margin Chinese buyers. On the other hand, the approval risks reigniting debate about national security and semiconductor controls; some analysts view this as evidence that AI capex competition, not geopolitical posturing, is driving policy. For broader equities, the narrative reinforces the thesis that the AI buildout is global, not just US-centric, and that Magnificent Seven tech stocks will continue to face upside momentumThe empirical fact that winners keep winning over the medium term. as capex cycles lengthen and internationalize.

Skeptics note that approvals for 10 firms does not constitute a full reversal of export controls, and that any future Trump-Xi friction could reverse gains quickly. Markets are assuming detente will hold through the remainder of Q2 2026, but geopolitical risk premiums remain embedded.